ROANOKE TIMES
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, August 3, 1994                   TAG: 9408040016
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO  
SOURCE: From The Associated Press and the Los Angeles Times
DATELINE: WASHINGTON                                 LENGTH: Medium


REFORM OPTION DEBUTS

Setting the stage for a momentous debate, Senate Majority Leader George Mitchell outlined a ``voluntary system'' for health reform Tuesday. It relies on billions in federal subsidies to expand coverage to 95 percent of all Americans by the year 2000.

In a speech that capped a painstaking effort to find common ground among Senate Democrats, Mitchell called for deferring until early in the 21st century any requirement for businesses to share the cost of insuring their workers. Even then, there is no certainty a so-called employer mandate would take effect.

``My bill ... lays the groundwork for universal coverage through a voluntary system,'' he said in urging lawmakers to act in the coming weeks.

Prodded by President Clinton's call for universal coverage, the House and Senate are expected to vote within the next three weeks on health reform. The issue has split the political parties sharply in the run-up to this fall's congressional elections.

It also has triggered an unprecedented lobbying war as groups ranging from doctors to Christian Scientists work to influence the legislation.

Mitchell's plan was designed to strike a delicate balance within the 56-member Senate Democratic caucus between liberals who favor universal coverage and moderates who oppose so-called employer mandates.

Democratic aides stressed the votes were not yet there, and said they were unlikely to get support from more than one Republican, but initial reaction was positive.

``I think he's put together the essential elements to achieve the critical mass, which is 51 votes,'' said Sen. Charles Robb, D-Va.

Minority Leader Bob Dole of Kansas, who has united 40 of the Senate's 44 Republicans behind a less sweeping plan, was the first to shake Mitchell's hand after his speech.

The courtesy blended rapidly into criticism.

Sen. Phil Gramm of Texas, a likely 1996 GOP presidential contender, said Mitchell's proposal was an extension of Clinton's earlier measure. It ``expands the government bureaucracy, expands spending, taxes health insurance benefits,'' he said.

The Congressional Budget Office tentatively has estimated that the voluntary measures will succeed in expanding coverage to 95 percent, from its current 85 percent, without triggering the mandate. Thus, it provides a degree of political cover for senators who oppose mandates, because it gives them grounds to claim the requirement never would go into effect.



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